S&P 500 Price Forecast – Stock Markets Stall at Major Level

The S&P 500 went back and forth during the trading session on Friday, as we have seen the market stall at this crucial region. What’s even more important is that the 2800 level has offered resistance and of course the 50 day EMA is right here as well. Further compounding this area is the fact that it is where the 50% Fibonacci retracement level. Because of this, I do think that we continue to see sellers come into this market and it is not until we break above the high of the week that I would consider buying. Ultimately, if we break down below the lows of this past week it is likely that the market drifts down towards the 2640 handle. That being said though, I think it is only a matter of time before we do see the negativity come out, because this is a market that has gotten way ahead of itself.

S&P 500 Video 27.04.20

If we do break out to the upside, there is a gap just above at the 200 day EMA and the 61.8% Fibonacci retracement level that should attract a lot of attention as well, so I think it’s only a matter of time before sellers would come in there as well. In other words, I am bearish on the stock market even though we have seen a nice rally. While Wall Street has been going crazy over the 23% gain (or so) over the last couple of weeks, a simple look at the chart can tell you that we are a long way away from the highs.